Fiscal Year 2004 Adopted Budget

BUDGET SUMMARY

MISSION STATEMENT: To stimulate smart growth while maximizing mass transit opportunities for Arlington residents and visitors

The Washington Metropolitan Area Transit Authority (WMATA) is a regional public transportation partnership among and between the area's state and local governments and the federal government. WMATA's member jurisdictions are: Arlington and Fairfax counties, the cities of Alexandria, Fairfax and Falls Church in Virginia, the District of Columbia and Montgomery and Prince George's counties in Maryland. WMATA provides an integrated bus and rail system for the metropolitan area. The authority's major programs are Metrorail, Metrobus and MetroAccess operations, the Metrorail Construction Program and the Capital Improvement Program (CIP) which includes the Infrastructure Renewal Program (IRP), the System Access/Capacity Program (SAP) and the System Expansion Program (SEP).

FY 2004 PRIORITIES: The FY 2004 proposed priorities of WMATA are:

• Maintain current level of services.

• Increase police and security.

• Cost control through mManagement streamlining and Pprogram streamlining.

SIGNIFICANT BUDGET CHANGES: The FY 2004 adopted General Fund transfer subsidy for WMATA is $11.1 million reflecting an 8 percent increase from the FY 2003 adopted budget.

The operating subsidy increases by 3 percent, which reflects:

• A moderate 2 percent decrease in the Metrobus subsidy resulting from proposed changes in the Metrobus service in the County.

• A moderate 1 percent decrease in the Metrorail budget.

• An increase of $83,000, which represents a 33 percent increase in the MetroAccess budget.

• A return to traditional audit adjustment practices resulting in an estimated $0.5 million credit to Arlington to be applied to the FY 2004 subsidy. This represents a 67 percent reduction compared to the adopted budget in FY 2003.

Due to the uncertainty in the revenues coming from state transit aid and regional gas tax, a zero increase in revenues is estimated. It is also planned to use existing credit at WMATA to cover expenses for $294,696.

BUDGET DESCRIPTION: WMATA's FY 2004 proposed operating budget for the Metrobus, Metrorail and MetroAccess systems would require a $26.2 million operating subsidy from Arlington County, a 3 percent increase from the FY 2003 Arlington subsidy budget. This total includes an increase of $0.75 million due to proposed changes in the Metrobus service to Columbia Pike that will be discussed by WMATA Board during the budget process, and a reduction due to changes in Metrobus Route 22, which is currently served by WMATA.

The FY 2004 proposed WMATA CIP totals $297.9 million. This program funds procurement of replacement Metrobuses, bus overhaul, escalator/elevator rehabilitation and Metrorail station and railcar capital improvements and enhancements. Arlington County expects to contribute approximately $8.3 million to WMATA's CIP in FY 2004 from bond funds and state grants.

The County's commitment to the $2.1 billion Fast Track program to complete the 103-mile Metrorail system totals $48.2 million. In FY 2004, Arlington's estimated cash outlay for this program would be $0.6 million and would be funded using previously voter-approved County general obligation bonds or state bonds. The County's share of debt service on revenue bonds previously issued by WMATA for Metrorail construction is $2.7 million and is paid by the Northern Virginia Transportation Commission (NVTC) from state transit aid and gas tax revenues.

Financing for WMATA programs is provided by passenger fares and federal, state and local government assistance. The proposed WMATA budget contains a six percent fare increase, the first increase in eight years. Federal grants that support the WMATA CIP and Metrorail construction and grants for operating assistance flow directly to WMATA. Some federal funds allocated to the state are also allocated directly to WMATA.

The NVTC receives state transit funds on behalf of Northern Virginia jurisdictions and federal funds not directly allocated to WMATA. In addition, the state collects a two‑percent regional gas tax on behalf of NVTC and distributes the proceeds to NVTC for payment to WMATA for qualifying operating and capital costs. These revenues are reflected as State Transit Aid and Regional Gas Tax receipts in the County budget. Local governments provide the remaining funding for transit operating programs. Arlington County uses General Fund dollars to finance this portion of its share of WMATA operations.

Between 1993 and 1999, the state issued approximately $327.6 million of recordation tax-backed bonds for transportation projects in Northern Virginia. Arlington County has received $29.79 million of proceeds from these state bond issues for Metrorail construction and CIP costs. In CY 2001, the state issued $16.0 million of right‑of‑way fee backed bonds of which Arlington received approximately $3.9 million for Metrorail cars. The balance of the WMATA CIP and Metrorail construction program is primarily funded from County general obligation bond proceeds, with a small portion coming from state transit aid and gas tax proceeds. On May 28, 2002, the Commonwealth of Virginia sent $18.0 million to Metro as an initial payment for the procurement of 50 railcars Series 6000. Arlington County's share of $5.7 million will be used to pay Arlington County's $10.5 million total contribution.

FUTURE BUDGET CONSIDERATIONS: The following factors may impact the WMATA operating budget and County's Capital Improvement Program in the future:

• Restricting growth of MetroAccess service.

• Procurement of additional railcars.

• Bus service coordination and expansion.

• Ten-year CIP funding.

• Continue growth of insurance costs, health and property and casualty.

• Additional Safety and Security measures to be taken.

(1)      Includes estimated change in the Columbia Pike Metrobus service, estimated incremental expenses $750,000. This change will be presented to WMATA before the approval of its budget This amount also includes a reduction in the budget due to changes .in Metrobus Route 22, currently served by Metro.

(2)      Includes project management costs of Arlington County Reimbursable Projects managed by METRO (Ballston Metrorail Station Access Improvements, Clarendon Canopy, Crystal City Canopy, Shirlington Metrobus Station).

(3)      State Transit Aid, Regional Gas Tax, and Other revenues for FY 2004 are estimates.

(4)      Credit available at WMATA.